The Obama administration quietly finalized the Health Insurance Tax (HIT) over the Thanksgiving holiday weekend, a provision in Obamacare that will cost nearly $60 billion over the next five years and raise health care premiums by 3 percent.

The final rule, published on Nov. 27, imposes a fee beginning in 2014 for health insurers with premium revenues over $25 million per year. The annual tax is levied for United States health risks, and is hidden from consumers since it is directly assessed on health insurance companies.

David R. Burton, a senior fellow in economic policy at the Heritage Foundation, said the tax will disproportionally impact small businesses.

Most large corporations self-insure, Burton told the Washington Free Beacon. They may or may not have stop-loss insurance. Medium-sized businesses will self-insure but then have whats called stop-loss insurance so that if their claims exceed a certain amount the insurance company will compensate them. The largest corporations are self-insured, period.

In contrast, small companies actually buy health insurance and its only the actual health insurance that is subject to the tax, self-insured plans are not, he said.

An analysis by the American Action Forum found that under the tax, premiums for small businesses and households will increase as much as 3 percent over the next ten years, or roughly $5,000 per family over the decade.

According to the Business Council of New York State, the average family will see a $270 increase in their premiums in 2014. Over the next decade, the tax will cost families $5,080.

Some of the more problematic issues of the tax are that revenue raised by the tax does not even directly fund new health care benefits but instead goes into the general treasury, the Business Council said. Additionally, small businesses will pay a disproportionate share of these taxes since these employers are far more likely to purchase insurance rather than self-insure.

The final rule sets explicit revenues that the tax must generate each year, beginning with $8 billion in 2014. The government will collect $11.3 billion from the HIT in 2015 and 2016; $13.9 billion in 2017; and $14.3 billion in 2018, a total of $58.8 billion over five years. Thereafter, the tax will be increased subject to premium growth.

Its an odd sort of tax, Burton said. Its not at a specific rate, but it raises a specific amount of revenue from insurers who underwrite health insurance outside of the exchanges. You basically have a set amount of money and then its allocated among the insurers based on the amount of health insurance premiums they actually wrote.

The tax is also hidden from consumers. They wont see it, Burton said. Its in effect hidden because its imposed on the insurance companies, but its a cost to them that they have to recover by raising premiums.

Burton said estimates for premium increases range from 2.5 to 3 percent. The health insurance tax joins the list of Obamacare tax increases, including the medical device tax, payroll taxes, an excise tax on Cadillac plans, and others.

Its just one more way theyre raising the cost of employing people, Burton said. Its hidden so people dont really understand why, thats probably one of the more insidious aspects of it is that its hiding the true effect of it because of the way its structured.

If people saw that 3 percent tax on their bill every month they would feel differently about it, he said.

The Obama administration quietly finalized the Health Insurance Tax (HIT) over the Thanksgiving holiday weekend, a provision in Obamacare that will cost nearly $60 billion over the next five years and raise health care premiums by 3 percent.

Anyone still expecting to put $2500 bucks back "in their pocket" due to ObamaCare is about to have their heart broken. Just another Obamalie.

4
posted on 12/04/2013 1:55:53 PM PST
by FlingWingFlyer
(If you think signing up for ObamaCare was fun, wait until you try to use it.)

Gas taxes are one such hidden cost. You pay “X” amount at the pump, but that “X” amount includes 18.4 cents federal tax, and state taxes are added in too. But they aren’t listed separately in the pump price.

Here in California, gas is also subject to sales tax, in addition to federal and state gas taxes. None of these taxes are broken out separately.

In retailing, we all pay hidden charges to compensate for security costs and losses due to shoplifting and inventory “shrinkage”, or employee theft.

In the medical area, we all pay more than we should because healthcare providers are charged such stiff premiums for their malpractice insurance. People such as John Edwards are partly responsible for those costs, with his huge malpractice awards he has gotten.

The end consumer ends up paying all of these taxes and fees in the form of higher prices than would be charged if these taxes and fees did not exist.

No wonder why we had to pass it to find out what's in it... a moving target is ever changing. I think we'll be finding out what's in it via dribs and drabs until the stinking thing is extinguished, sliced, diced, chopped, pureed, pummeled, and then the remainder dropped in acid. Even then, I'd be leery...

11
posted on 12/04/2013 2:08:27 PM PST
by C210N
(When people fear government there is tyranny; when government fears people there is liberty)

Sure there is. The taxes are indirect and a consumer is not levied the tax. There is an estimate of this 3% but who knows what it will actually be. It will be buried in the cost of premiums - thus hidden. Companies don’t really ‘pay’ taxes — they just pass them on to consumers.

Hidden taxes, indirect taxes, laundered taxes - whatever you want to call them - is one of my pet peeves. If taxpayers actually paid a bill each month for all the indirect taxes they actually pay they would be astounded.

While I am a capitalist and I support the right of insurance companies to operate and to provide insurance; I believe (and you may or may not agree according to your sensibilities) that HC insurance (specifically, the miserable Doc compensation rates provided) is about 65% responsible for excess HC costs. The remainder (again, my opinion) is largely a function of federally and locally-enforced and ratified monopoly structures such as CON laws and the prohibition against importing Rx drugs.

15
posted on 12/04/2013 2:10:06 PM PST
by Attention Surplus Disorder
(At no time was the Obama administration aware of what the Obama administration was doing)

There is no such thing as a tax hidden from consumers as this article suggests.

Yes there is.

If you a low-information puke, all you will know is, your insurance premium went up. Meanwhile, when you watch the MSM, you will see Obozo blasting the greedy insurance companies and calling for Single Payer.

The simple fact is lefties are just plain dumb. Say a leftie is renting a house for $1000 a month from a landlord who bought the house years ago and had paid off the mortgage. Someone buys the properly and the payment is $1200 a month. The leftie expects the new owner to eat the $200. In fact, some of them even think the original owner should split the profits with them.

I have a 36 year old step daughter who simply cannot understand what a mortgage is. She’s not retarded. She’s just dumb and hard headed.

The Clown in the Main Tent in Sodom on the Potomac is slowly bleeding America to death.

He has cut the head off the senior officer's corps of the military. Keeping only those who approve of loving the enemy and homosexuals. He gives aid and comfort to all our enemies. He turns his back on the very few allies we have left around the globe. He has down sized our nukes. He gives the Soviets and the Red Chinese freedom to roam the seas.

The Soviets now have a nuke sub that spent the summer in the Gulf of Mexico and we never knew it. The Navy knows that this new sub is a "black hole" and they CANNOT FIND THIS SUB! It can sneak up on our shores and pop nukes on us and we will never know where they came from.

The Congress is hapless. They are fools of the 10th degree. Unable to do anything. They are cowards. They are traitors to the Republic. The Dimwits and the RINOparty members combine to destroy every last bit of freedom this republic has left. The National Debt is what??? $17 Trillion or $80 Trillion when Social Security and Medicare are tossed into it. We are living in a house of cards.

This Republic has been dismantled while everyone sits on their butts watching reality TV and sports!! Yes, lets all watch the BIG GAME this week. While everyone watches TV, the movies, goes to the bar and drinks themselves silly, snorts drugs up their noses, the Republic dies.

I served 20+ years defending this nation. I served from Vietnam to the East-West German border. I saw the murdering thugs of Communism destroy millions of lives. Slaves in their own nations. Now, HERE, Americans, for a free cell phone, free hand outs, toss a nation, FOUNDED BY GOD FEARING, GOD BELIEVING MEN, FOUNDED ON THE BIBLE, throwing this Republic down the toilet. Great. Wonderful. When the Muzzies come marching down Pennsylvania Avenue, declare Sharia Law and start chopping off the heads of the dope heads, homosexuals, nonbelievers, and anyone else that does not bow to their made up false god Al-Bundy and their religion's pedophile founder Moohamhocks. Yup, enjoy it fools. Throw away over 200 years of the greatest nation that God created and allowed to prosper.

Believe it or not folks, if you have not repented and asked the God of Abraham, Issac and Jacob to forgive you of our sins, you are doomed!! HE IS THE ONLY WAY OUT OF THIS GARBAGE DUMP WE NOW HAVE!!!

22
posted on 12/04/2013 2:46:00 PM PST
by RetiredArmy
(I am proud to be a Christian and follower of my Lord Jesus Christ. Time is short for U to know Him!)

Government never worries about costs, because all it has to do is stick its hands in the pockets of the peasants. You can see that in the astronomical prices they are demanding, calling ordinary catastrophic policies "substandard."

All government knows how to do is take money at the barrel of a gun. That epitomizes everything they do.

26
posted on 12/04/2013 3:32:05 PM PST
by E. Pluribus Unum
(Who knew that one day professional wrestling would be less fake than professional journalism?)

This is true. True also is this is a known (even the low-information crowd eventually learns the truth). Final truth is the reason 30 million new low-information voters are being place up for legalization is to replace the defectors. All of which you knew, so consider this post as a low-information post already known by you, please.

34
posted on 12/04/2013 4:52:30 PM PST
by no-to-illegals
(Scrutinize our government and Secure the Blessing of Freedom and Justice)

“Its an odd sort of tax, Burton said. Its not at a specific rate, but it raises a specific amount of revenue from insurers who underwrite health insurance outside of the exchanges. You basically have a set amount of money and then its allocated among the insurers based on the amount of health insurance premiums they actually wrote.

The tax is also hidden from consumers. They wont see it, Burton said. Its in effect hidden because its imposed on the insurance companies, but its a cost to them that they have to recover by raising premiums.

“The Congress is hapless. They are fools of the 10th degree. Unable to do anything. They are cowards. They are traitors to the Republic. The Dimwits and the RINOparty “

The democrats believe in socialism. The republicans do not have the votes to stop obama and even worse, for most of the past 5 years of Obama, the repubicans did not even have the support of the public who sided with Obama.

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